Once you’ve found the perfect trader to copy, you’ll need to know how much to copy the eToro trader with. This walkthrough and etoro copytrader calculator is to give a rough indication of what is the minimum you’ll need to copy all open positions.
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Once you have found the perfect trader to copy, you will need to know how much to copy the eToro trader with.
The easiest way to do this is either
- Ask the CopyTrader for their recommended amount, or
- Check their bio to see if they have already recommended an amount to copy with.
eToro goes to great lengths to ensure the privacy of a trader’s equity and this is for a simple reason. The trader’s equity should have nothing to do with how much you, as the Copier, allocates to the trader. Therefore some traders have different equity amounts and different risk allocation sizes to put towards a trader. Simply put, the amount is up to you with what you feel comfortable with.
How much to copy an eToro CopyTrader with?
Fortunately, there is a simple answer and for this, we need to look at the minimum and maximum amounts you can copy their trades with.
- $200 is the minimum amount you can copy with
- $2,000,000 is the maximum amount you can copy with
So, you can copy any allowable trader for just $200 – no questions asked. The maximum is $2,000,000. If you do have $2,000,000 you want to allocate to a trader – I would be more than happy to accept it!
With CopyTrading, the important thing here is that the minimum amount for a copied trade is $1; trades below this amount will not be opened. As an example, if someone you were copying opened a trade that was worth less than $1 in your trading amount, it would not be executed for you.
So, how do I calculate how much I allocate?
Honestly, it is up to you. There are ways you can calculate the minimum trade size so you can figure out what the amount is to copy all of their trades but as I mentioned before, it shouldn’t make a difference because it is what you feel comfortable with and any CopyTrader should tell you what the optimal trading size is.
Minimum amount to copy all trades
As I have mentioned, the minimum is $200 to copy someone. Now, there is a way to calculate what you need to execute all their trades but that is a personal choice of what people can afford to allocate. I am not going to go into detail, but it is general mathematics.
Find their minimum trade allocation size – this represents $1. So, say it is 0.25%, that means that $1 needs to represent at least 0.25% of the portfolio. A simple calculation shows us that 0.25% of $400.00 is $1. Therefore, to open all trades when copying that trader, you would need to copy with $400.
The question is now, should you allocate only $400? No – it is up to you? You might not be able to afford $400. Or you might be able to afford more? You might want to add $100 per month for a year. Each trader is different with different equity amounts, so do what feels right to you. The higher amount you add to the CopyTrader, the bigger the rewards from profits, so only copy with what you are comfortable with.
eToro Popular investors are a fantastic bunch of traders, always willing to help others, so please, ask them first then go from there. No one knows their portfolio as they do.
eToro CopyTrader allocation example
Well, we can make some assumptions to get a good idea. With this, we’ll use my portfolio so you can follow along.
Looking through my portfolio (or any other portfolio you choose) you need to find the smallest individual allocation. This might take some going back and forth between trades to find it but let’s say it’s $BTC and it represents 0.25% of my portfolio.
So 0.25% of my portfolio (at least $1000) is $1 – which we know can’t be true as the minimum for the cryptocurrency is around $25 (depending on when you joined eToro). So, say that this trade is the absolute minimum of $25, that means
In my portfolio
- $25 = 0.25%
- $100 = 1%
- $10,000 = 100%
That means that my portfolio is approximately $10,000 in equity.
Now, we look at the minimum required for a Copytrade to be executed. That minimum trade amount is $1, anything under that is not executed.
So combining our knowledge of minimum trade size ($1) and minimum trade allocation (0.25%) that means that $1 needs to represent at least 0.25% of the portfolio. A simple calculation shows us that 0.25% of $400.00 is $1.
Therefore, in order to open all trades when copying me, you would need to copy with $400.
eToro Copytrader Calculator
Below is a calculator I’ve created to help you figure out what is the recommended amount you need to copy someone. This is based on their Popular Investor level and the minimum allocation.
This eToro calculator is still a work in progress and isn’t meant to be 100% but without knowing a trader’s equity to the dollar, it is hard to work out.
Again, the best way to get an indication of how much to copy with to open all trades is to ask the trader. The amount that you allocate to a trader should be your decision only.
Let me know what you think and if you have any suggestions.
